Estoppel – Foreclosure Action

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WI Court of Appeals – District IV

Case Name: First Western SBLC, Inc., v. New Lisbon Travel Mart, LLC,

Case No.: 2019AP113

Officials: Blanchard, Graham and Nashold, JJ.

Focus: Estoppel – Foreclosure Action

New Lisbon Travel Mart, LLC, appeals a money judgment in favor of First Western SBLC, Inc., in the amount of $779,013.68. The judgment was entered in a foreclosure action. New Lisbon contends that it was entitled to a $190,000 credit toward the judgment based on a promissory note that it assigned to First Western in a short sale of the underlying property.

New Lisbon’s final argument is that First Western should be estopped from opposing the $190,000 credit based on First Western’s prior conduct. In particular, New Lisbon points to First Western’s insistence that the note be assigned to First Western, and that the note was accompanied by an allonge giving First Western all rights to enforce the note as the holder. New Lisbon asserts that First Western’s conduct was an “admission” that the note “has value.” New Lisbon argues that First Western should not be permitted to now act inconsistently with its admission by claiming that the note has no value or that the value is impossible to determine.

We reject New Lisbon’s estoppel argument because we disagree that First Western’s conduct shows an admission as to the note’s value, particularly when that conduct occurred prior to the failure of Rugg’s business. If there is a true inconsistency between First Western’s position at the time of the short sale and its position now, New Lisbon’s briefing fails to demonstrate it. We affirm.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.